ISLAMABAD: PTCL Group, Pakistan’s premier ICT services provider, denied any speculation and unfounded rumors concerning the financial health of its wholly-owned subsidiary, U Microfinance Bank (Ubank). Ubank, recognized as Pakistan’s fastest-growing microfinance bank and a prominent player in the nation’s banking sector, underscores its robust and unwavering financial structure and substantial capital base.
Emphasizing its unwavering commitment to Ubank’s continued growth and the fulfillment of its core mission of financial inclusion for all segments of Pakistani society, PTCL Group affirms that Ubank’s teams, from its management to its on-ground staff, will persist in making progress, fostering innovation, and working toward their shared goals.
Ubank’s financial resilience is evident in its Gross Loan Portfolio, which ranks among the highest in the industry, a testament to the bank’s sustainable growth strategy. Impressively, nearly 54% of this portfolio is backed by gold, a reflection of the bank’s stability in its lending practices. Moreover, Ubank boasts a diverse portfolio, spanning areas such as solar financing agriculture, including tractor financing, housing, and vehicle financing, among others.
PTCL Group proudly offers robust backing to Ubank, which is evident in the bank’s financial structure. Ubank possesses a paid-up capital of PKR 4 billion, including PKR 1 billion as additional Tier-1 capital and PKR 1.2 billion as Tier-2 capital contributed by PTCL. Additionally, Ubank has successfully raised an additional PKR 1 billion as Tier-1 capital from the market. This steady injection of capital has driven the growth of the bank’s funding base, bolstered by consistent cash flows, deposits, lending activities, and capital influx.
PTCL Group Reassures Ubank’s Future Growth
Hatem Bamatraf, President and Group CEO of PTCL & Ufone 4G and Chairman of the Board of Directors of U Microfinance Bank, emphatically underscores Ubank’s strong connection with PTCL Group. He commends the bank for its remarkable financial performance and positive growth trajectory and reassures investors, customers, and shareholders of PTCL Group’s unwavering support. Mr. Bamatraf further confirms that there is currently no need for equity injection into the bank but affirms PTCL Group’s complete commitment to meeting any future growth requirements.
With a substantial capital base, diversified revenue streams, and an outstanding growth record, Ubank maintains a credible long-term credit rating of A+ bestowed upon it by PACRA Credit Rating Agency and VIS Credit Rating Company. Both credit rating agencies in Pakistan maintain a ‘Stable’ outlook for Ubank, recognizing the bank’s sustainable and strategic approach to its business operations.
Mohamed Essa Al Taheri, the incumbent President and CEO of U Microfinance Bank, has a deep connection with Ubank, having served as a Member of the Board of Directors in the past. His extensive experience includes roles as the Group EVP of Financial Policies and Systems within the e& Group. Addressing recent rumors circulating across various platforms regarding UPaisa and U Microfinance Bank’s capital base, Al Taheri categorically dispels these claims, labeling them as baseless and unfounded. He reiterates Ubank’s strong foundation and praises the unwavering support of its investors, partners, stakeholders, and loyal customers as the bank remains dedicated to its path of growth and excellence.
PTCL, owned 62% by the Government of Pakistan and 26% by e& (formerly Etisalat), welcomed its subsidiary, U Microfinance Bank, in 2012. Over the years, Ubank has witnessed consistent and remarkable growth, enhancing its profitability while expanding its presence across urban and rural areas of Pakistan. Ubank, through its extensive network of 350+ branches, remains committed to reaching the unbanked population and offering viable financial products and services, thereby promoting financial inclusion across the nation.
